Are you telling me to buy PP/SOPUS?
Why are oil prices going up?
- Thread starter sasilverbullet
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Originally Posted by 53' Stude
Are you telling me to buy PP/SOPUS?
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![[Linked Image]](https://www.bobistheoilguy.com/forums/attachments/usergals/2019/07/full-85545-34793-ancient_aliens_27072019155731.jpg "[Linked Image]")
Are you telling me to buy PP/SOPUS?
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Originally Posted by PimTac
"Good question.. depends on where their NG fields are. Dunno"
Shell has their massive GTL plant in Qatar.
Then that would place them squarely in the thick of it..
"Good question.. depends on where their NG fields are. Dunno"
Shell has their massive GTL plant in Qatar.
Then that would place them squarely in the thick of it..
Originally Posted by Mad_Hatter
Originally Posted by 53' Stude
Are you telling me to buy PP/SOPUS?
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LOL!
Originally Posted by 53' Stude
Are you telling me to buy PP/SOPUS?
...‚
LOL!
Originally Posted by sasilverbullet
Seems like the price of a gallon of oil has gone up from $28'ish to $38'ish.
If so, why? Gas hasn't gone up...
Or am I dreaming?
The "why" of oil spot price isn't as hard to figure, but the highlighted part is I think not getting answered.
US gas prices and middle east oil prices are not as tightly linked as they used to be. Unlike in '87 when the Tanker War w/Iran played out, the US is now a roughly net self-sufficient in petroleum production (there is still substantial import/export - it's not 100% fungible). Take a look at this graph from the US Energy Information Association about net imports from the early '70s through this past spring:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mttntus2&f=m
While US producers compete on the global market for prices, costs are lower w/o transportation or the political risk included in pricing with unstable supplies. In effect, us refined petroleum prices are much more de-coupled from middle east tension.
Seems like the price of a gallon of oil has gone up from $28'ish to $38'ish.
If so, why? Gas hasn't gone up...
Or am I dreaming?
The "why" of oil spot price isn't as hard to figure, but the highlighted part is I think not getting answered.
US gas prices and middle east oil prices are not as tightly linked as they used to be. Unlike in '87 when the Tanker War w/Iran played out, the US is now a roughly net self-sufficient in petroleum production (there is still substantial import/export - it's not 100% fungible). Take a look at this graph from the US Energy Information Association about net imports from the early '70s through this past spring:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mttntus2&f=m
While US producers compete on the global market for prices, costs are lower w/o transportation or the political risk included in pricing with unstable supplies. In effect, us refined petroleum prices are much more de-coupled from middle east tension.
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Originally Posted by walterjay
Trouble with Iran...explosion of refinery in Philadelphia. And I am sure there are other factors.
I have to point out that at $63 per crude barrel, the cost of oil accounts for $1.50 of the $28 to $38 per gallon of motor oil. Okay the value of the motor oil that's in crude might be relatively higher, but even in crude oil prices go up 50% it would probably add $1 per gallon the the price of motor oil.
I assume the rest of the cost is additional refining, additives, marketing, bottling, transportation, R&D etc.
Trouble with Iran...explosion of refinery in Philadelphia. And I am sure there are other factors.
I have to point out that at $63 per crude barrel, the cost of oil accounts for $1.50 of the $28 to $38 per gallon of motor oil. Okay the value of the motor oil that's in crude might be relatively higher, but even in crude oil prices go up 50% it would probably add $1 per gallon the the price of motor oil.
I assume the rest of the cost is additional refining, additives, marketing, bottling, transportation, R&D etc.
4wd
$50 site donor 2026
Originally Posted by philipp10
Originally Posted by benjy
because they can!! like big pharma theres little regulation or laws so any excuse or higher demand holidays the consumer pays $$$$$$
Then why isn't gasoline $10 a gallon?
Based on my last Rx meds … good correlation.
Originally Posted by benjy
because they can!! like big pharma theres little regulation or laws so any excuse or higher demand holidays the consumer pays $$$$$$
Then why isn't gasoline $10 a gallon?
Based on my last Rx meds … good correlation.
4wd
$50 site donor 2026
But if it comes from the North Field … is fully refined … and then shipped to Port of Houston … it's exposed?
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